Assume the Level of Investment Is $8 Billion and Independent

question 33

Essay

Assume the level of investment is $8 billion and independent of the level of total output.Complete the following table and answer the following questions about this private closed economy. (a) What are the sizes of the MPC, MPS, and multiplier in this economy?
(b) If full employment in this economy is 140 million, will there be a recessionary or inflationary gap? Explain the consequences of this gap.(c) Using the multiplier concept, determine what change in investment is needed to eliminate the output gap.(d) If full employment in this economy is 110 million, will there be an inflationary or recessionary gap? Explain the consequences of this gap.(e) Using the multiplier concept, determine what change in investment is needed to eliminate the output gap from part (d).

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A small cartilaginous extension at the lower end of the sternum which becomes ossified in the adult human.

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A nutritional guide created by the USDA to help American citizens understand and implement healthy eating habits, featuring proportions of different food groups.

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